Valor Real Estate Partners Completes €20M Acquisition of Milan Distribution Facility

Valor Real Estate Partners has completed its debut acquisition in Italy, purchasing a distribution facility in Cerro Maggiore, northwest Milan, for approximately €20 million from Nuveen. The transaction was structured through an Italian REIF managed by Colliers Global Investors Italy.

The 20,926 square meter property comprises modern distribution space and ancillary office space. The facility was comprehensively refurbished in 2023 to Grade A standard, featuring modern loading docks and a 49-meter yard space that allows full vehicle circulation. The property is fully leased to UBV World, a transport and logistics provider, with 4.5 years remaining on the lease term.

Strategic Entry Into High-Growth Milan Market

The acquisition represents Valor Real Estate Partners' entry into one of Europe's performing logistics markets. Milan has experienced rental growth of 13 percent compound annual growth rate since 2014. Total take-up has exceeded completions by 900,000 square meters since 2021.

Valor Real Estate Partners is targeting approximately €100 million of investment in the Milan city region during 2026 as it continues expanding its footprint in European markets. The property is located in Cerro Maggiore, described as the most densely-populated submarket in the Milan region, offering connectivity to Milan city center via the E62 and A8 motorways.

Data-Led Approach Drives Expansion Strategy

Matthew Ganas, Senior Vice President at Valor Real Estate Partners, commented on the acquisition: "Milan has fast become one of Europe's leading logistics markets, with a rapidly growing urban population and a location that allows it to serve as a strategic hub for wider distribution needs across Italy. Entering new markets where we can utilise our data-led approach is key to our growth ambitions."

Ganas added that the firm has identified a pipeline of acquisition opportunities in the Milan region focused on prime, reversionary assets as well as older properties with short lease profiles where there is opportunity to improve functionality, energy performance and rental levels through refurbishment and asset management.

Expanding Pan-European Portfolio

Following this transaction, Valor Real Estate Partners' footprint extends across more than 11 gateway cities in the United Kingdom, France, Germany, Netherlands, Ireland and Italy. The firm's portfolio spans over 200 assets totaling 17 million square feet, with more than €5 billion in assets under management on behalf of global investors.

Valor Real Estate Partners was advised on the transaction by DILS Italy and GRUPPO RYZE.